Any Payroll/tax gurus here?

[huberm]

I recently started a new job and received some relocation benefits - a month free stay in a local hotel and a paid move to the local area.

The past two paychecks I have been taxed on the local hotel my company paid for (taxed as income). It has been decreasing my paycheck by about $300 per pay period.

I am very grateful for the benefits my new employer provided, but its killing me right now since I have two mortgages until my old home sells. They are taxing me for the hotel I stayed in right now - will they tax me for paying for the moving company???

 

[sactoking]

Yes- it's a noncompensation relocation benefit and taxable

 

[EagleKeeper]

If you are being taxed forit as income, you can also use the Form 2106 and 3903 to offset the expenses.

 

[amish]

Originally posted by: Common Courtesy
If you are being taxed forit as income, you can also use the Form 2106 and 3903 to offset the expenses.

make sure you meet the distance test if you are going to use form 3903. study up here!

 

[BoomerD]

Wait...you didn't know up front they were going to treat the relocation expenses as taxable income?? <face palm>

amish's link is a good one...pay VERY close attention to the details...

 

[EagleKeeper]

Originally posted by: amish

Originally posted by: Common Courtesy
If you are being taxed forit as income, you can also use the Form 2106 and 3903 to offset the expenses.

make sure you meet the distance test if you are going to use form 3903. study up here!

Most companies will not cover hotel expenses as relo costs if you are within the 3903 (50 miles) range.

That is why I did not bring that up.

 

[Epic Fail]

Doesn't it hurt if your company is overpaying for the hotel?